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Maximizing organizational efficiency ratings

By Staff | Dec 1, 2008

If business owners let mediocrity flourish in their businesses, it will drive away highly motivated, highly competent team members. Unfortunately, most companies’ organizational efficiency is around 60 to 65 percent of what it should be.These assessments are from Bob Clements, owner of Bob Clements International Inc., a Missouri-based business training company.To improve one’s company’s efficiency, Clements offers a simple Organizational Effectiveness Rating for evaluating employees.”I encourage managers to do this quarterly,” said Clements, who noted that a low OER can cost a company thousands of dollars per year. “It’s a fun exercise based on the six types of employees. It also can help you catch problems early so you can fix them.” Determine where each employee fits within the six categories, and then rank the person on a scale of 1 to 100, with 1 being the lowest rating and 100 being the best. The categories include;1. Motivated/low competence. These are typically new employees who are excited to work, but need a lot of guidance. They usually score a 50.2. Motivated/competent. These employees have a good attitude, are willing to learn and need minimal supervision. They usually score a 75.3. Motivated/high competence. These are the employees who have a great attitude, come in early, stay late and offer good ideas. These usually score a 100, meaning for every $1 the company spends on them, they return $1 to the company. 4. Unmotivated/high competence. These highly skilled employees are starting to develop a bad attitude and no longer have the positive impact on the organization that they once did. They usually score an 80. 5. Unmotivated/competent. These employees aren’t willing to learn new skills and often start missing more days of work. They usually score a 50.6. Unmotivated/low competence. You can’t trust these employees to do anything right, and they offer no value to the organization. They usually score between 1 and 20.To calculate the OER, add up the total scores assigned to the employees, and divide this number by the number of employees.”Spend the bulk of your time and energy on the unmotivated, highly competent employees and try to motivate them again,” Clements said. “Also, get rid of the low-performing, negative people. Even one person like this in a small business can destroy the organization.”

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